This was an exclusive article written for Seeking Alpha.
What a couple good months we had in the precious metals world. Silver is at a 3.5 month high. Our companies sales, especially in silver, were great in August and September, setting some new records as many bought the dips. But now that we have moved up in price, what is the situation with the supply of silver today? What are it’s future price projections? Before we get to that, let’s recap the last couple months.
Was Silver Really In Short Supply?
The answer is no, it wasn’t. The supply issues were related to limited production capacity and suppliers not having enough of certain types of coins and bars available, primarily the Eagles, Maples, Rounds and 1, 10 and 100 ounce bars. There were plenty of 1000 ounce bars available, but most investors don’t buy them.
Suppliers were caught with limited supply on this last downturn in price and their ability to produce metals to satisfy demand was limited by the number of machines they had. Nothing more. If you only have so much production capacity, you have to push out the delivery time and that’s what we saw the suppliers do. It was as much as 12 weeks that buyers had to wait for delivery for some suppliers.
Silver Supply Current Status
To continue reading please go to Seeking Alpha: http://seekingalpha.com/article/3581646-is-silver-really-in-short-supply
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About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.